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Question of the Day: What is your stance on AI?
adamr
Executive Member
i got prime less 2% on the fiat 500 at the time .. but of late people have become very sticky on interest rate amounts ...
This is what the dealership told me when I bought my bakkie recently. This was apparently due to all the losses sustained by the banks in the last year or more.
Of course one cannot trust what a car salesperson has to say, but what he said made sense. Also if you are buying a vehicle with a Instalment Sale Contract, the term of that contract will also determine the rate the bank charges. The theory is lower rates for longer term and vice versa.
Yes, BMW Northcliff offered me prime less 5 with BMW finance.
Awesome deal, a car worth like almost 300K less a R90k deposit for some ridiculous figure of R2600/month.........too bad ITC had my name thoughand i had to settle for MFC at 12.5.
most probably through BMW Finance ... not sure which bank they use .. i also have prime -3.5%, bought mine last year March .. no deposit but residual
I don't have a credit history, so I think that my interest rate for my car (when i do buy one eventually) will be very high, that's if my car finance is approved. I buy stuff in cash, I've never had accounts, ever!!!
Mike Hoxbig
Honorary Master
Good luck with that. You need credit to get credit.
I would suggest that you start building your credit profile from now. It doesn't need to be extravagant, a cellphone contract and clothing store account should do provided you manage to pay on time for a few months.
F
Fudzy
Guest
Well seeing as this was necro-posted...
How exactly does one run up a BAD credit record if all your credit repayments are automatically debited from your account. (ie. cellphone/car etc)? Do they basically check to make sure you don't deplete your account completely into arrears?
How exactly does one run up a BAD credit record if all your credit repayments are automatically debited from your account. (ie. cellphone/car etc)? Do they basically check to make sure you don't deplete your account completely into arrears?
supersunbird
Honorary Master
Huh? Your bank account is not a municipality account and thus you can't go into arrears. If you have a overdraft, you can go into that I guess.
Bottomline is you get a bad credit record by not paying your account, either by not doing the EFT or by not having enough money in your bank account causing the debit order to be rejected. Then the credit provider sends that info through to the different credit bureaus and then on your credit profile they will indicate how many months you paid late or havent paid at all on each different credit provider. So the more months you have missed/late payments and across more credit providers the worse it is.
It also shows most of your credit providers and what amount your loans or accounts are at, thus if you are streched to the limits on your credit versus your income, then you also have what can be considered a "bad" credit record. Even how many times your credit profile has been checked by other possible credit providers, it can influence the quality of your credit record ratin because it means you are applying for a lot of credit.
I did have a cellphone contract actually, but i cancelled it a year ago after having the contract for 2 years. That's the only credit record they will find.
LMAO - mate I was in the same boat. Didn't have no cerdit record, not even cell phone contract! My car interest was a healthy 19% FIXED! LMAO I'm paying R500 more each month than I should!
Good luck, like everyone suggests...get your credit up, good way is with a credit card...buy something Friday like a PS3 and pay it ALL off on wednesday!!! They DON'T like that as they don't gain any interest, but it shows you can PAY quick!
On Saturday i went to a VW dealership to ask how much I would pay if I decide to buy a Polo Vivo. I filled out a form, the salesman had a look at it and asked me why I didn't fill in my existing accounts, I told him I don't have any account at all, I only buy stuff in cash. He looked surprised obviously and he tol dme it will be difficult for me (if not impossible) to get finance for my car. I asked him if having a credit card and using it from time to time will help, he told me NO!
Truth of the matter is, I do use my credit card from time to time, only problem is that I pay it back the same night most of the time. Maybe I should wait a few days or weeks before I pay it back next time. I'm gonna buy a new bed within the week, so I should consider buying it on credit instead of in cash.
Your credit history is based more on your cheque account than your credit cards.
Agree ..besides you pay a hefty charge when you withdraw cash whereas you dont pay any charges when you pay by card. Also, pay it when the CC statement arrives not before.
What I don't understand is...I pay everything in the flat...from car to rent to food to tithes to everything...and we splurge wifey's entire salary - oh, and savings comes from her acc.
So my Cheque acc is almost empty 10 days after pay...damn! Can't be man...I use the CC and then pay it just before month end or month end...so my record looks good. Funny story is, just last year I had no credit record, to company calling me offering me a new phone for free...because my credit record is so good...pls!
use CC, pay off in 2 or 3 weeks...Only worry is...sometimes they ask for CC statement and they see a massive dependancy on the CC...which is also not good. but then again, on radio there was a woman who earns 6k pm and got car finance approved for 4k pm...MY WORD!
So my Cheque acc is almost empty 10 days after pay...damn! Can't be man...I use the CC and then pay it just before month end or month end...so my record looks good. Funny story is, just last year I had no credit record, to company calling me offering me a new phone for free...because my credit record is so good...pls!
use CC, pay off in 2 or 3 weeks...Only worry is...sometimes they ask for CC statement and they see a massive dependancy on the CC...which is also not good. but then again, on radio there was a woman who earns 6k pm and got car finance approved for 4k pm...MY WORD!
I just got a call from the VW salesman, he submitted my form to different banks and only 2 approve my car finance so far. First it's standard bank and the other one is MFC, they both offer me an interest rate of 15.5%, which will work out to about R2750 a month, that's for a 4 door Polo Vivo with a total price tag of about R114500. Is it a good deal? Or is the interest rate too high?
That's about right for the price...
but let me ask a backwards question...why a Vivo?(yuk)If it was up to me I would deny your application for finance just because its a Vivo. lol.
Damn, that is actually pretty good, considering. I got charged 17% variable when I bought my new car in Feb, and that was with a R20k deposit. In hindsight I should have bought a R20k motorbike and worked up a credit history while saving for another deposit. That way I would have gotten a much better interest rate.
So in retrospect...you are NOT happy with your new car?
I don't think there are ways and means of beating this system...if you don't have the R270k to make it rain on the desk of the dealer principle...then you have to fall victim to banks and their insane lending criteria and just be happy with the car you have...that's basically how the story goes.
I am just saying that I could have been paying a few hundred rand less a month had I waited a little.